Israeli company CardoNet, formerly called DSO, has raised $9 million from US venture capital fund Sequoia Capital. Company value for the deal was $32 million, after money. Sequoia received 27.5% of CardoNet's share capital.
This is the second investment by Sequoia International in Israel, and the first since Sequoia began operating through Sequoia Capital Seed, managed by Haim Sadger, which Sequoia owns jointly with Cisco International. Sequoia International's first investment in Israel was in Perfecto, which deals in information security.
CardoNet was founded in 1997 by Dr. Itay Meiri and Offer Markovich. To date the company has raised $14.5 million from the Giza, Newton, and Yozma funds. The Israeli-registered company's R&D activity is located in Ra'anana. It operates in the US through a Silicon Valley subsidiary.
CardoNet provides solutions for content catalogue management for B2B e-commerce. CardoNet's solution enables e-commerce forums to construct and maintain a large catalogue of suppliers. The company says that the catalogue increases the volume of actual business traffic, influences customers to continue using the site, and shortens time-to-market of new products and services.
The company's customers include Ariba, Consolidated Commerce, Intelligent Digital, Intershop, and Yantra. The Sequoia venture capital fund is considered one of the most important and successful funds in Silicon Valley. Its investments include Apple, Oracle, Yahoo!, and LSI Logic.
Published by Israel's Business Arena on May 14, 2000